Capital One promised very high interest rates on millions of savings accounts but the bank didn’t deliver, losing customers more than $2 billion, the Consumer Financial Protection Bureau (CFPB) alleged.
The more customers a bank has the more money it can potentially earn. So, banks often try to attract new customers by offering higher interest rates than their competitors. Banks earn less money when they pay out higher interest to customers. Banks are bound by federal laws to pay the interest rates promised.
